Online Payday Loan Scams: What You Should Know

Is your phone blowing up with phone calls and text messages? If you’ve applied for an online payday loan, chances are, it is. Almost immediately after applying for or receiving an online payday loan, your personal information has been sold to dozens of other online payday lenders and people who shouldn’t be handling your personal information.

We’ve worked with hundreds of customers who’ve applied for online payday loans, which unfortunately put them in the direct path of scammers.

When you’re applying for an online payday loan, you’re required to enter your personal information, like your social security number, full name, address, DOB and more information that you don’t want in the hands of someone trying to scam you.

Many people apply for payday loans online, trusting that their information will be handled appropriately. The unfortunate truth, though, is that that doesn’t always happen.

Scam artists are really good at what they do. They use your personal information that they’ve purchased from legitimate online payday lenders, and they pose as someone from one of your payday lenders. When they have all of your personal information, it’s very easy for the scammers to sound legitimate. They’ll call your home and work phone incessantly. They’re able to confirm your identity because they have all of your information. And then, they use fear to coerce you into doing what they want.

Almost every single one of the thousands of clients we’ve worked with has been a victim of scams. If you’ve applied for an online payday loan, chances are that you will be a victim of a scam, as well.

So, what should you know?

Online Payday Loans Are Dangerous

Applying for an online payday loan makes your personal information (date of birth, social security number, address, full name, etc.) vulnerable to identity theft and fraud. By submitting this information online via payday loan companies that aren’t operating with ethical practices, you are risking your personal information being sold to (or stolen by) hundreds of others. This puts you at an increased risk for scams and fraud. The immediate benefit of receiving cash does not outweigh the financial risk and burden of dealing with payday loan scams for months, or
years, afterwards.

They Use Fear as a Tactic

Scammers will buy thousands of people’s personal information, including yours, from online payday lenders. They’ll call, email, and text until they get you on the phone. Once they get you on the phone, they’ll convince you that they’re calling to collect on a payday loan. They pose as as someone from one of your payday lenders. After all, they have your personal information, so it’s easy for them to sound legitimate. They’ll use fear to coerce you into doing what they want. They’ll call your boss at work. They’ll use the threat of arrest. They’ll back you into a corner until you finally pay up or give in. They know how to use fear and intimidation very well. For most, when you’re backed into a corner and overcome by fear, you do what’s asked of you. You hand over the requested information out of fear … only to find out later that it was all just a scam.

They Lie

These online scammers will offer you fake loans. “You can have $10,000 today if you send us $500 down!” You’ll send them the $500 and will never receive any money in return. Or they’ll lie and use your personal information against you to convince you that they’re a representative from one of your payday lenders. The truth is, they’re not even official businesses. They’re just scam artists who are using your personal information against you in a vulnerable state.

It Can Happen to You

We’ve worked with thousands of clients who have fallen victim to the payday loan trap. Nearly every one of our clients has also fallen victim to a scam as a result of their personal information leaking from applying for online payday loans. We’re not making this stuff up. We’ve heard the stories hundreds of times from hundreds of different people. It really happens. And it can happen to you. This lady shares her story of dealing with a scam and how she caught the scammer before she became a victim.